The Irish travel firm said that $10m of the freshly raised funds will be used to retire existing debt and liabilities. A further $2m will be used to provide a revolving working capital facility, while the remainder is being earmarked for initial acquisitions as part of part of the company's programme of strategic expansion in the US. The company owns New York-based corporate travel firm Tzell Travel.

CNG Travel, (which counts Michael Smurfit as a board member) floated on London's Alternative Investment Market in 2004, with its shares trading at £1.03. Following a profit warning and the departure of its founder and chief executive, Finbarr Power, the stock lost more than 80% of its value.

Last year it sold the lossmaking placestostay. com to Fexco for just 3m. CNG had acquired the business a year previously for 10m.

On Friday CNG's stock closed at 11.5p, valuing the firm at £6.77m ( 9.9m). The company is backed by highprofile investors such as Michael Smurfit and house builder Seamus Ross.

CNG Travel chief executive PJ King said in a statement last week that the company is now looking forward with "cautious optimism". He was unavailable for comment last Friday.

The company holds its AGM tomorrow. At last year's annual meeting, shareholders expressed unhappiness at the fact that an $8m bank loan to the company, guaranteed by Seamus Ross' Menolly Homes, was converted into shares when it was not repaid. A show of hands opposed the re-election of Seamus Ross Jnr as director, but proxies carried the appointment.